2016-12-01 12:02:45

Review and dynamics
Yesterday oil prices soared up by 10% and reached new highs in the past 5 weeks. The price of crude oil Brent reached the level of 52.45 near the upper limit of the new descending channel on the daily chart. At the European session the price is slightly declining amid profit taking in the market.

On the daily, weekly and monthly charts the indicators OsMA and Stochastic give buy signals; on the 4-your and hourly charts the indicators give signals to sell.

In the results of yesterday’s rapid rise, the price has rebounded from the key support level of 47.25 (ЕМА200 on the daily chart) and broke out resistance level of 48.20 (ЕМА50 on the daily chart). However, the price has not reached the annual and October highs of 53.70.

Our opinion
It is likely that the price will move in the range of 50.70 (Fibonacci 61.8% after the decline from 65.30 to the lows of 2016 at 27.00) and 53.70.

In case of the uptrend and breaking out of the upper limit of the range at the level of 53.70, the price will go up to resistance level of 55.60 (ЕМА200 on the weekly chart) in the ascending channel.

However, the rise in the USD and excess of oil supply will prevent the rise in the prices of oil.

If the price breaks down support levels of 50.70 and 50.00 the decline may continue to support levels of 48.20 and 47.25.

Breakdown of 46.20 (Fibonacci 50.0%) will trigger further decline in the descending channel on the daily chart with the targets of 43.65 and 41.70 (Fibonacci 38.2%). After breaking down of 41.70 (Fibonacci 38.2% and the lows of July and August) the decline in oil price will continue.

Support levels: 51.10, 50.70, 50.00, 48.20, 47.25, 46.20, 44.30, 43.65, 41.70 and 41.00.
Resistance levels: 53.00, 53.70 and 55.60.

Trading tips
Sell Stop: 51.35. Stop-Loss: 52.10. Take-Profit: 51.10, 50.70, 50.00, 48.20 and 47.25.
Buy Stop: 52.70. Stop-Loss: 51.80. Take-Profit: 53.00, 53.70 and 55.60.

To the level of 55.60
To the level of 55.60

Rebound from the upper line of the channel
Rebound from the upper line of the channel